FACTORS AFFECTING PERFORMANCE OF MANUFACTURING FIRMS IN KENYA: A CASE OF PHARMACEUTICAL FIRMS IN NAIROBI COUNTY

Abstract

The global manufacturing scene has experienced rapid changes over the last one or two decades. This is a key variable in the growth of the Kenyan economy. Much of the developing countries in world are experiencing rapid economic growth. The manufacturing sector aims to generate revenue and growth in Kenya. The Kenya Economic Survey of 2015 estimated that the contribution to the GDP by the manufacturing sector stands at 11% which explains the favorable environment policies and campaigns in place to encourage the growth of the sector. There are top major classes of the resources that influence performance of manufacturing firms which are financial resources and human resources. Various types of technology can be used to achieve manufacturing organization goal or objective. A manufacturing firm would be able to create value through a strategic alliance that the firm could not create on its own. The purpose of this study was to evaluate challenges facing performance of manufacturing firms in Kenya. The objectives of the study were to establish how resource constraints and ICT on the performance of manufacturing in Kenya. The study adopted a descriptive design to explain the interaction between the determinant variables and performance of manufacturing firms in Kenya. The study targeted employees of registered pharmaceutical manufacturers in Nairobi County. Primary data was collected using structured questionnaires which were drooped and picked later and covered all the objectives of the study with a sample size of 252 . The data was then analysed by use of SPSS V 21. In regard to information communication technology the study concluded that it positively and significantly affected performance of Pharmaceutical manufacturing industry in Kenya. The study deduced that the manufacturing firm that engaged in online Services would boost its competitive edge and that adequate infrastructure innovation of a manufacturing firm increased its market share. Therefore the study recommended that Pharmaceutical manufacturing industry in Kenya should integrate information communication technology. This would assist in advertisement where the firm was able to make the public aware of the existence of their products and also enhance online promotions for their goods hence improving the performance of the firm. Key Words: Resource Constraints, Information Communication Technology, Performance